Kirloskar Ferrous Industries Ltd (KIRLFER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Indian Metals

Sarda Energy

Kirl. Ferrous

Sunflag Iron

Prakash Industri

Mukand

Maithan Alloys

S.A.L Steel

KIOCL

Jai Balaji Inds.

NMDC Steel

Why is Kirloskar Ferrous Industries Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.60 times

Poor long term growth as Operating profit has grown by an annual rate -0.95% of over the last 5 years

Positive results in Mar 26

OPERATING PROFIT TO INTEREST(Q) Highest at 7.50 times
NET SALES(Q) Highest at Rs 1,817.16 cr
PBDIT(Q) Highest at Rs 224.56 cr.

With ROCE of 11.3, it has a Very Attractive valuation with a 1.8 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.43%, its profits have risen by 25.2% ; the PEG ratio of the company is 0.8

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 0.65% over the previous quarter and collectively hold 14.35% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.43% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kirl. Ferrous should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kirl. Ferrous for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Kirl. Ferrous

-5.43%

-0.15

36.14%

Sensex

-3.74%

-0.28

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.39%

EBIT Growth (5y)

-4.65%

EBIT to Interest (avg)

5.03

Debt to EBITDA (avg)

2.88

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.40

Tax Ratio

27.95%

Dividend Payout Ratio

30.79%

Pledged Shares

Institutional Holding

14.35%

ROCE (avg)

13.52%

ROE (avg)

11.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.04

EV to EBIT

14.84

EV to EBITDA

10.13

EV to Capital Employed

1.78

EV to Sales

1.24

PEG Ratio

0.79

Dividend Yield

1.24%

ROCE (Latest)

11.32%

ROE (Latest)

9.11%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 7.50 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.28 times

NET SALES(Q)

Highest at Rs 1,817.16 cr

PBDIT(Q)

Highest at Rs 224.56 cr.

PBT LESS OI(Q)

Highest at Rs 125.46 cr.

PAT(Q)

Highest at Rs 123.10 cr.

EPS(Q)

Highest at Rs 7.46

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for Kirl. Ferrous

Operating Profit to Interest - Quarterly

Highest at 7.50 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 123.10 cr has Grown at 45.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 84.35 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 1,817.16 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 224.56 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 125.46 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 123.10 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 7.46

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.28 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Kirl. Ferrous

Non Operating Income - Quarterly

Highest at Rs 44.35 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income